Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

24AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern

• Scope
• Definition of Term
• Objectives of AU-C Section 570
• Responsibility for the Evaluation of the Entity's Ability to Continue as a Going Concern
  • Management's Responsibility
  • Auditor's Responsibility
• Requirements
  • Specific Audit Procedures
  • Indications of Going Concern Problems
  • Consideration of Management's Evaluation and the Auditor's Evaluation
  • Additional Procedures When Events or Conditions Are Identified
  • Written Representations
  • Auditor Conclusion—Substantial Doubt Exists
  • Auditor Conclusion—Substantial Doubt Has Been Alleviated
  • Effects on the Auditor's Report
  • Communication with Those Charged with Governance
  • Eliminating a Going Concern Section from a Reissued Report
  • Significant Delay in the Issuance of Financial Statements
  • Documentation Requirements
• AU-C 570 Illustration—Going Concern Checklist

SCOPE

NOTE: AU-C 570 applies in the audit of any type of entity. It is applicable to both profit-making and not-for-profit organizations. Thus, it would apply, for example, in the audit of a municipality. Also, the Section applies to financial statements prepared using a general-purpose or special-purpose framework. However, it does not apply to liquidation-basis financial statements. (AU-C 570.01)

The table below summarizes the scope of AU-C 570 under various circumstances (Summarized from AU-C 570).

Circumstance	Auditor Responsibilities
Complete set of financial statements ...